Ozark Distributing Company is primarily engaged in the wholesale distribution of consumer products in the Ozark Mountain regions. The following disclosure note appeared in the company's 2021 annual report: Note 5. Convertible Preferred Stock (in part): The Company has the following Convertible Preferred Stock outstanding as of September 2021: Date of issuance: Optionally redeemable beginning: Par value (qross proceeds): Number of shares: Liquidation preference per share: Conversion price per share: Number of common shares in which to be converted: Dividend rate: June 17, 2018 June 18, 2020 $1,950,000 130,000 15 $ 20.30 96,059 6.7053 The Preferred Stock is convertible at any time by the holders into a number of shares of Ozark's common stock equal to the number of preferred shares being converted times a fraction equal to $15 divided by the conversion price. The conversion prices for the Preferred Stock are subject to customary adjustments in the event of stock splits, stock dividends and certain other distributions on the Common Stock. Cumulative dividends for the Preferred Stock are payable in arrears, when, as, and if declared by the Board of Directors, on March 31, June 30, September 30, and December 31 of each year. The Preferred Stock is optionally redeemable by the Company beginning on various dates, as listed above, at redemption prices equal to 120% of the liquidation preference. The redemption prices decrease 1% annually thereafter until the redemption price equals the liquidation preference, after which date it remains the liquidation preference. Required: 1. What amount of dividends is paid annually to a preferred shareholder owning 100 shares of the Series A preferred stock? 2. If dividends are not paid in 2022 and 2023, but are paid in 2024, what amount of dividends will the shareholder receive? 3. If the investor chooses to convert the shares in 2022, how many shares of common stock will the investor receive for his/her 100 shares? 4. If Ozark chooses to redeem the shares on June 18, 2022, what amount will the investor be paid for his/her 100 shares? Required 1 Required 2 Required 3 Required 4 What amount of dividends is paid annually to a preferred shareholder owning 100 shares of the Series A preferred stock? (Enter percentage value in 3 decimals.) Dividend Rate Number of Par Value Preferred Shares Preferred Total Annual Preferred Dividend $ 130,748 Dividend per preferred share 1.00575 Shares owned Shares Annual preferred dividend 100 shares $ 100.575 $ 1,950,000 6.705 % 130,000 100 Required 1 Required 2 > Required 1 Required 2 Required 3 Required 4 If dividends are not paid in 2022 and 2023, but are paid in 2024, what amount of dividends will the shareholder receive? (Round your answer to 3 decimal places.) Amount of dividends S 301.725 Required 1 Required 3 > Required 1 Required 2 Required 3 Required 4 If the investor chooses to convert the shares in 2022, how many shares of common stock will the investor receive for his/her 100 shares? (Round your answers to 2 decimal places.) Number of convertible preferred shares owned 100.00 Conversion Factor $15/$20.30 Number of common shares received 73.89 Required 1 Required 2 Required 3 Required 4 If Ozark chooses to redeem the shares on June 18, 2022, what amount will the investor be paid for his/her 100 shares? (Round "Per Share Amounts" to 2 decimal places except percentage values.) Total 100 shares Liquidation preference Redemption Percentage (%) Redemption price, June 18, 2022 Per Share Amounts 15.00 120 X % 17.64 X $ $ 1,764 X
